TRM Labs has spearheaded the creation of the Beacon Network to combat crypto crime

Key points:

• Beacon Network is designed to prevent the illegal withdrawal of funds from the blockchain.
• Since 2023, at least $47 billion has been sent to addresses associated with fraud.
• Particular attention will be paid to combating hackers and fraudsters, preventing terrorist financing, and returning funds to victims.

TRM Labs has announced the launch of Beacon Network, the first real-time network for responding to crypto crimes. Created in collaboration with law enforcement agencies, exchanges, and stablecoin issuers, Beacon Network is designed to prevent illegal funds from being drained from the blockchain.

The network’s co-founders include crypto exchanges Coinbase, Binance, Kraken, trading platform Robinhood, payment giant PayPal, digital asset servicing company Anchorage Digital, Ripple, and security researchers, including ZachXBT and Security Alliance (SEAL). TRM Labs noted:

“Leading federal law enforcement agencies globally are actively contributing to the network, flagging addresses linked to critical threats and triggering alerts that help stop illicit actors before they can cash out.”

High level of fraud in the crypto sphere

According to new data from TRM Labs, at least $47 billion has been sent to addresses associated with fraudulent activity since 2023, although this figure may be significantly higher. In addition, 2025 was a record year for the number of hacks, with more than $2,3 billion stolen from the cryptocurrency ecosystem.

According to TRM Labs, stolen funds are often moved before law enforcement agencies have time to intervene. This was the case after the $1,5 billion Bybit hack earlier this year, when the stolen funds were moved in more than 10 000 transactions within the first month.

How does the Beacon Network work?

The company noted that until now, law enforcement agencies and cryptocurrency platforms have acted in isolation, responding only after illegal funds have disappeared. The time to intercept is often measured in minutes, not days. With Beacon Network, the situation is changing. The network will work as follows:

• Marking and distribution. Verified investigators mark addresses associated with financial crimes. Beacon Network automatically distributes these marks to associated wallets.
• Real-time alerts. When marked funds arrive at a participating exchange or issuer, Beacon Network instantly sends an alert.
• Rapid response. Cryptocurrency platforms can proactively review and block marked deposits before withdrawal, preventing illegal cashouts.
• Default accessibility. Partnership membership is free for verified exchanges and law enforcement partners.

Beacon Network can be used to track any illegal funds, but TRM Labs has stated that there are several key objectives that the group will focus on. Particular attention will be paid to combating hackers and fraudsters, preventing terrorist financing, and returning funds to victims. Finding new companies willing to join the network is also marked as a priority task.